UnitedHealth Group Founder to Increase $300M for Senior Care SPAC with Home Care Focus
The founding father of UnitedHealth Group Inc. ((NYSE:UN)H) is launching a special-purpose acquisition firm (SPAC) that has its eyes set on a $300 million public providing. Senior care — and home-based care, specifically — can be among the many new entity’s priorities.
Richard Burke grew to become the longest-serving director of UnitedHealth Group after he based the corporate. He’s now taking a shot at one of many hottest new tendencies on Wall Street — SPACs — to delve into the senior care market.
The Scottsdale, Arizona-based SPAC, at present dubbed “Senior Connect Acquisition Corp.,” is planning on capitalizing off of the tailwinds that the U.S.’s getting old inhabitants gives. The corporate is very keen on honing in on social determinants of well being (SDoH), home-based care providers and different well being platforms, monetary filings counsel.
The SPAC is moreover keen on monetary and legacy providers, in addition to senior life-style companies, usually, as elements of its working model.
It hopes to promote “30 million units” valued at $10 to lift that $300 million. Every unit will consist of 1 share of frequent stock and one-half of a warrant, which is exercisable at $11.50, in line with Renaissance Capital.
The proposed deal measurement would command a market value of $375 million.
UnitedHealth Group is a diversified well being care firm that gives a broad spectrum of services by UnitedHealthcare and Optum. UnitedHealthcare gives well being care protection and profit providers, whereas Optum gives data and technology-enabled well being providers.
Merely put, SPACs are an more and more common various avenue to going public. Sometimes called “blank check” corporations, SPACs increase cash by an IPO after which seek for an acquisition goal.
After a merger has been accomplished, the goal turns into a listed stock.
The Wall Street Journal has beforehand detailed how 2020 grew to become a report 12 months for SPACs.
San Francisco-based Clover Well being, a Medicare Benefit insurer with a home-based focus, introduced that it was going public with a SPAC in October.
On his finish, Burke has led 5 totally different corporations along with UnitedHealth Group. He’ll now maintain the positions of chairman and CEO for Senior Join Acquisition Corp. He at present serves as a managing accomplice at Wet Companions, a Scottsdale-based enterprise administration consulting agency.
On high of his well being care background, Burke additionally has an fascinating historical past in skilled sports activities. Burke purchased the Winnipeg Jets, an NHL crew, within the 90s, then introduced them to Arizona earlier than promoting the franchise on the flip of the century.
Senior Join Acquisition plans to listing on the Nasdaq underneath the image “SNRHU.” The corporate initially filed to go public in early October.